FET
A proposal was recently listed on Mintscan for a FET-USD market. Chaos Labs supports the addition of FET-USD to the dYdX Chain and recommends listing under liquidity tier 2. In line with the criteria for introducing a new market, as detailed in the v4 documentation, we present our analysis and the rationale behind our recommendation for FET’s listing.
Analysis
FET is currently listed for spot trading on exchanges, including Binance, Coinbase, MEXC, OKX, Bybit, Kraken, Gate, KuCoin, and HTX, with its launch on February 28, 2019 (CoinGecko). Recent 24-hour Perpetual volumes for FET have also recently been north of $140m, showing interest in trading it. With aggregate liquidity of $1.1m within a ±2% range, FET’s price stability is deemed robust enough against potential manipulation, qualifying it for listing on the dYdX Chain.
Liquidity Tier Recommendation
FET fulfills the requirements for a Long-Tail asset as defined in the dYdX v4 documentation, and, therefore, we suggest categorizing it under liquidity tier 2.
As outlined in the v4 documentation, liquidity tiers specify the margin requirements needed for each market and should be determined based on the depth of the relative market’s spot book as well as the token’s market capitalization.
FET aligns the Oracle liquidity requirement at 9 out of 9 Oracle sources, demonstrating liquidity greater than $50k on both sides. It is recommended only to use an HTX feed where alternatives do not exist, so we recommend using the other 8 price sources. Below are the volume and liquidity depth metrics for FET:
Given that it meets the Long-Tail criteria, we suggest listing FET at a liquidity tier of 2.